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Liberals will sell 60% of Hydro One to fund transit infrastructure

Premier Kathleen Wynne’s Liberals will sell off 60 per cent of the province’s $16-billion Hydro One transmission utility to bankroll new transit infrastructure, the Star has learned.

Queen’s Park will retain a 40 per cent stake and minority shareholders will be limited to a 10 per cent ownership, sources say.

At the same time, Hydro One Brampton and Hydro One Networks’ distribution arm will be spun off into a separate company and sold outright for up to $3 billion.

The Hydro One changes — and a plan to allow the sale of beer in about 300 supermarkets — are key recommendations in a major report to be released Thursday by Wynne’s privatization guru Ed Clark, the former TD Bank CEO.

All proceeds will go toward a 10-year, $29 billion infrastructure plan that includes $15 billion to build public transit in the Greater Toronto and Hamilton Area.

Wynne defended the Hydro One partial privatization, saying it’s a “very different process” than the full sell-off the Progressive Conservative administration had planned in 2002 because Ontario will keep the largest single ownership stake and maintain regulatory and price control. (Source: Toronto Star)